Investing in Nuclear Energy: Key Stocks to Consider
Nuclear energy is experiencing a resurgence, particularly under current policies aimed at revitalizing this sector. With three pivotal growth drivers—supportive government policies, increasing demand from data centers, and a global shift towards cleaner energy—it’s an opportune time for investors to explore nuclear energy stocks.
Constellation Energy (NASDAQ: CEG)
Constellation Energy stands out as a compelling option for investors. This company emerged as an independent entity in 2022 after separating from Exelon. As the leading producer of carbon-free energy in the United States, Constellation operates the largest nuclear fleet in the country. Its focus on nuclear power positions it well for future growth.
Recently, Constellation announced a significant acquisition of Calpine in a deal valued at $16.4 billion. This move aims to create a low-and-zero-carbon energy powerhouse with a capacity of nearly 60 gigawatts (GW), almost doubling its previous capacity. The acquisition is expected to enhance its presence in the rapidly growing artificial intelligence (AI) data center markets, particularly in Texas, and will be immediately accretive to earnings.
Constellation’s recent power purchase agreements (PPAs) with major tech companies such as Microsoft (NASDAQ: MSFT) and Meta Platforms highlight its growing influence in the nuclear energy sector. The company has committed to supplying power to these firms’ data centers over the next two decades, signifying a strong demand for nuclear-generated energy.
Moreover, Constellation Energy’s robust market position, combined with its regular dividend increases and share buyback initiatives, make it a top pick for investors seeking exposure to nuclear energy.
Investing in Nuclear Energy ETFs
If investing directly in nuclear stocks feels risky, consider exchange-traded funds (ETFs) focused on the nuclear sector. A notable example is the VanEck Uranium and Nuclear ETF (NYSEMKT: NLR). This ETF provides broad exposure to the nuclear energy industry, encompassing uranium miners, nuclear plant developers, utilities, and various suppliers.
As of September 30, 2025, the VanEck Uranium and Nuclear ETF’s top five holdings included:
- Oklo (8.63%): Specializes in small modular nuclear reactors.
- Constellation Energy (7.4%): A major player in nuclear energy.
- Cameco (6.92%): Focuses on uranium fuel and services.
- Centrus Energy (6.57%): Engaged in uranium enrichment services.
- BWX Technologies (6%): Provides nuclear components for the U.S. Navy.
This ETF not only includes U.S. companies but offers a global perspective, tracking some of the largest and most liquid nuclear and uranium firms worldwide, thus effectively diversifying risk for investors.
Conclusion
For those looking to capitalize on the growing momentum in the nuclear energy sector, Constellation Energy and nuclear-focused ETFs represent compelling avenues for investment. With the industry’s positive outlook, investors can position themselves for potential gains in the coming years.
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